CONTENTS

 INTRODUCTION
 VISION
 MISSION
 PESTEL ANALYSIS
 CONCLUSION
 REFERNCES FOR BOTH PESTEL AND PORTER’S ANALYSIS

SUBMITTED BY
VIJAY RAMA RAJU KUNAPARAJU
 INTRODUCTION

Ashok Leyland is an Indian Automotive manufacturing company headquartered in Chennai,

India. Founded in 1948, it is the 2nd largest commercial vehicle manufacturer in India, 4th
largest manufacturer of buses in the world and 16th largest manufacturer of trucks globally.
Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and
marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the
second largest commercial vehicle company in India in the medium and heavy commercial
vehicle (M&HCV) segment with a market share of 28% (2007–08). With passenger
transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market
leader in the bus segment. The company claims to carry more than 60 million passengers a
day, more people than the entire Indian rail network. In the trucks segment Ashok Leyland
primarily concentrates on the 16 ton to 25 ton range of trucks. However, Ashok Leyland has
presence in the entire truck range starting from 7.5 tons to 49 tons. With a joint venture
with Nissan Motors of Japan the company made its presence in the Light Commercial
Vehicle (LCV) segment (<7.5 tons).

Ashok Leyland is the 2nd largest manufacturer of commercial vehicles in India, the 4th
largest manufacturer of buses in the world and the 16th largest manufacturer of trucks
globally. With a turnover in excess of US $ 2.3 billion (2012-13) and a footprint that extends
across 50 countries, we are one of the most fully-integrated manufacturing companies this
side of the globe. Over 70 million passengers use our buses to get to their destinations every
day while over 700,000 trucks keep the wheels of economies moving. With the largest fleet
of logistics vehicles deployed in the Indian Army and significant partnerships with armed
forces across the globe, we help keep borders secure. Headquartered in Chennai, India, our
manufacturing footprint spreads across the globe with 8 plants; including one at Ras Al
Khaimah (UAE). Our Joint Venture partners include Nissan Motor Company (Japan) for
Light Commercial Vehicles, John Deere (USA) for Construction Equipment, Continental AG
(Germany) for Automotive Infotronics and the Alteams Group for the manufacture of high-
press die-casting extruded aluminium components for the automotive and
telecommunications sectors.

VISION
Be among the top Indian corporation acknowledged nationally and internationally for

 Excellence in quality of its products.

 Excellence in customer focus and service.

MISSION
Be a leader in the business of commercial vehicles, excelling InTechnology, quality and value to
customer fully supported by customer service of the highest order and meeting national and
international safety environments and safety standards

PESTEL ANALYSIS
PESTEL is a mnemonic which in its expanded form denotes P for
Political, E for Economic, S for Social, T for Technological, L for
Legal and E for Environmental. It gives a bird’s eye view of the
whole environment from many different angles that one wants to
check and keep a track of while contemplating on a certain idea/plan.

POLITICAL:
 Almost all of the regulations are increasing concerns for the
environment and the concern for safer automobiles.
 For the safety for passengers there was a law passed National Traffic and
Motor Vehicle Safety Act.
 For the environment a law was passed Vehicle Air Pollution and Control
Act.
 In 2002, the Indian government formulated an auto policy that aimed at
promoting, integrated, phased, enduring and self-sustained growth
of the Indian automotive industry.
 Indian government auto policy aimed at promoting an integrated,
phased and conductive growth of the Indian automobile industry.
 Promoting multi-model transportation and the implementation of mass
rapid transport system.

ECONOMIC:
 The Indian economy has grown at 8.5% per annum.
 The manufacturing sector has grown at 8-10 % per annum in the last few
years.
 Several Indian firms have partnered with global players.
 While some have formed joint ventures with equity participation, other
also has entered into technology tie-ups.
 Establishment of India as a manufacturing hub, for mini, compact cars,
OEMs and for auto components.

SOCIAL:
  Today’s society judges people on the type of vehicle people can drive.
 Another aspect of socio cultural is the environmental concerns for the
need of fuel-efficient vehicles.
 Since changed life style of people, leads to increased purchase of
automobiles, so automobile structure has a large customer base to
serve.
 Preference for fuel efficient vehicles with best running costs.

TECHNICAL:
 Because of new legislation, they had no choice but to come up
with the technology to make the fuel-efficient cars.
 Technological solutions help in integrating the supply chain,
hence reduce losses and
increase profitability.
 Customized solutions (designer Vehicles, etc) can be provided
with the proliferation of technology.
 Internet makes it easy to collect and analyse customer
feedback.
 Major global players like Audi, BMW, Hyundai etc have setup
their manufacturing units
in all over the world.

ENVIRONMENTAL:
 It includes pollution control to the environmental.
 Corporate environmental responsibility must be taken seriously
and environmental policy must be implemented.
 It helps in recycling of the products.
 It includes global warming, loss of habitat and biodiversity, as
well as air, water and land pollution.

LEGAL:
The directions and stability of political factors are a major consideration for
managers on company strategy. It defines the legal and regulatory parameters
within which firms must operate.
 Political changes in foreign countries.
 Providing special tariffs.
 There will be an Import & Export regulation.
 Minimum wage legislation to the workers to be given by the
organisation.
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and Rules made there under, your Company has
constituted an Internal Complaints Committee (ICC). During the year under review, there
were no cases received/filed pursuant to the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

CONCLUSION
A PEST analysis is a useful technique for reviewing the
external forces that impact on an organisation. The technique
offers a structured basis for reviewing the organisation's
strategic direction and for considering future priorities.
In the case of Ashok Leyland, political factors play the key role
in shaping its activities and priorities. Economic factors
influence its spending decisions, social factors shape the
demand for spending decisions, social factors shape the
demand for automotive agency services and the technological
developments can offer innovative solutions to some of the
challenges in the managing a modern automotive vehicle.
By understanding these factors in external environment, The
Ashok Leyland can shape its activities appropriately.
REFERNCES

http://www.managementparadise.com/knt.nallasamygounder/documents/6319/ashok-leyland-
automobile-industry-analysis/

https://www.ukessays.com/essays/business/international-expansion-of-ashok-leyland-and-the-uk-
business-essay.php

http://pestleanalysis.com/what-is-pestle-analysis/

http://read-between-the-headlines.blogspot.cz/2015/02/porters-analysis-indian-commercial.html

http://www.moneycontrol.com/annual-report/ashokleyland/directors-report/AL#AL

http://international.ashokleyland.com/projects.php

http://www.ashokleyland.com/suppliers-corner

http://documents.tips/documents/ashok-leyland-poter-analysisdocx.html

http://www.hoovers.com/company-information/cs/
competition.ashok_leyland_limited.20b8ddced9a9766d.html

THANK YOU